Aging network overhaul: How the Older Americans Act is making a difference

The Older Americans Act (OAA), first enacted in 1965, has been a cornerstone in providing essential services to older adults, enabling them to age with dignity and independence. The 2024 OAA Final Rule represents the first substantial update to OAA regulations aiming to align the regulation with current statutes and address emerging issues.

Key aspects of the Final Rule include:

• Enhanced service delivery: The rule emphasizes the integration of non-medical services (e.g. caregiver supports, home delivered meals, non-emergency transportation) into healthcare delivery models, recognizing the critical role these services play in preventing hospitalization and institutional care.
• Improved accountability: Strengthened oversight and accountability measures are introduced to enable effective use of funds and adherence to program goals.
• Needs-based prioritization: The Final Rule obligates AAAs to direct resources to those with the greatest economic and social need.

The Final Rule introduces significant updates to the OAA regulations, reflecting changes in the aging population and advancements in the understanding of the importance and impact of caring for at-risk communities. This would include affordable, safe housing, addressing social isolation, caregiver burden, and programs like falls prevention to support positive aging. We explore the implications of the Final Rule and the importance of sound business acumen within organizations that serve older adults—including Area Agencies on Aging (AAAs)—and the need for business efficiency for maximum return on investment (ROI) for Older Americans Act funding.

How can AAAs benefit from business acumen?

AAAs were created to address the needs of the older adult population in the United States and therefore play a pivotal role in implementing OAA programs at the local level. These agencies are tasked with planning, coordinating, and delivering a range of long-term services and supports to older adults within their local communities.

For the sake of their communities, AAAs must be willing to modernize to meet the changing needs of older adults and the demands of running an efficient business. AAAs are increasingly recognized for their role in providing services that help at-risk older adults maintain their independence and quality of life. These valuable services mitigate health risk and save states money by reducing or delaying dependence on higher-cost care at skilled nursing facilities and hospitals.

To navigate the complexities of modern service delivery and funding, AAAs must develop robust business acumen. This involves:

• Strategic Partnerships: Building collaborations with health care entities to integrate social services into healthcare delivery. This approach not only enhances service provision but also enables new funding opportunities and creates a more integrated support system for older adults. AAAs need to evolve their business models to adapt to the times and create a broader base of income for sustainability. A few focus areas of evolution include:
  • Administration for Community Living’s Community Care Hub (CCH) initiative
  • Public Private Partnerships meant to support large-scale initiatives that might be beyond the reach otherwise for AAAs to meet growing service demand that outpaces resources causing longer and longer waiting lists

• Financial Management: Effective budgeting and financial oversight are crucial for sustaining operations and ensuring compliance with regulatory requirements.
• Quality Assurance: AAAs must implement rigorous data-driven processes to improve quality assurance and maintain high standards of service delivery and efficient use of available resources.
• Innovation and Technology: AAAs must become knowledgeable, and support innovative solutions and technologies such as telehealth services, smart home devices, and other assistive technologies that enhance the ability of older adults to live independently

Conclusion

The 2024 Final Rule marks a significant milestone in the evolution of the Older Americans Act, reflecting contemporary needs and priorities. Michelle Branham, Secretary of the Florida Department of Elder Affairs, notes that her state’s continued investment growing its aging network has produced measurable results for its older adult population, which ranks among the highest in the country.

“I’m very excited about Florida’s continued commitment under Governor Desantis’ leadership to being the nation’s model for serving our cherished aging adults by maximizing our resources, partnerships, and innovative strategies,” Branham said. “This ongoing leveling up of our infrastructure with key partners, including Guidehouse, assists us in the acceleration of our mission.”

As more states look to adopt Master Plans on Aging, agencies that serve older adults should be leading the charge to execute these policies. Aging network leaders can ensure the success of these plans by committing to the highest level of business acumen and efficient service delivery.

This article originally appeared in the Academy Health blog.